Overview

The Department of Energy & Climate Change recently published a white paper setting out its intention to "transform the UK's electricity system to ensure that our future electricity supply is secure, low carbon and affordable". The paper's key new policies include:

● long-term contracts for low-carbon energy called Feed-In Tariffs with Contracts for Difference to provide predictable revenue streams for investors in low-carbon generation;
● a carbon price floor to further incentivise low-carbon generation;
● the introduction of a capacity mechanism to ensure there is enough electricity to meet peak demand; and
● measures to improve wholesale market liquidity.

This briefing provides an overview of the proposals and outlines how they are likely to affect electricity generation. Click 'View Briefing' to read more.